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Ten things That Can Derail an FHA Appraisal

By
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

Have you had a contract go south due to an FHA appraisal?  Here are 10 simple steps to follow if you are expecting an FHA appraisal, compliments of Don Taylor, Certified Residential Appraiser.

1. Peeling paint on homes built prior to 1978.

2. Roofing with less than 2 years of remaining life.

   a. Curling shingles.

   b. Water stains on the ceiling.

   c. Mismatched or missing shingles.

3. Windows either cracked or painted shut.

   a. Window wells without covers.

   b. Windows with burglar bars.

4. Utilities must be on and in working order.

   a. Water must be on and working at all faucets and toilets not just on at the main.

   b. Gas must be on to the furnace.

5. Plumbing should not leak and drains should be running.

6. Stairs:

   a. Missing or uneven stairs.

   b. Missing handrails for stairs with over 3 steps.

7. Foundation problems:

   a. Cracked foundations are more of a problem than cracked floors.

   b. Porches that have settled causing uneven steps.

8. Poor drainage:

   a. Inadequate landscaping that allows water to settle next to the foundation.

   b. Leaking or missing gutters and/or drain extensions.

9. Electrical:

   a. Missing or non-working outlets.

   b. Loose and exposed wiring.

10. Inadequate access to the attic.

Lenders are requiring an additional statement in appraisals that at least a head and shoulders inspection was made. Hope this helps! 

Posted by

Joan Cox
Broker/Owner, REALTOR®
House to Home, Inc.

Serving the Denver Metro area including all suburbs


Helping Buyers and Sellers achieve their real estate dreams, one house at a time!

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Comments (14)

Gwen Fowler SC Lakes & Mountains 864-710-4518
Gwen Fowler Real Estate, Inc - Walhalla, SC
Gwen Fowler Real Estate, Inc.

I got in trouble because the pilot light would not stay lit.  I had to get the gas company out to light the pilot light during the appraisal. Everything came out good and I was glad the appraiser called me when he did.

Jun 03, 2023 06:05 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Joan... this is a big reason why home sellers won't consider an FHA loan when they have multiple offers. 

Jun 03, 2023 06:20 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gwen, that would make sense, as they do check to ensure the furnace and water heater work.

Jun 03, 2023 06:41 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nina Hollander, Broker and VA offers as well.

Jun 03, 2023 06:41 AM
Nina Hollander, Broker

Joan Cox VA has been much more reasonable in recent past. I haven't had any issues with VA inspections or appraisals in years.

Jun 03, 2023 07:34 AM
Joan Cox

Nina Hollander, Broker I did in January, a bit of peeling paint in the dead of winter.  Got an extension, painted in April.   STILL haven't had the escrow funds released.

Jun 03, 2023 07:42 AM
Nina Hollander, Broker

Joan Cox we don't see that many painted houses here... so maybe that's why I don't see a lot of issues. We saw it more often with wood windows in the past... but now it seems most people have vinyl.

Jun 03, 2023 08:13 AM
Roy Kelley
Retired - Gaithersburg, MD

This is good information to share with home sellers. 

It is best to make the repairs before listing the home for sale.

Jun 03, 2023 07:04 AM
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

We don't get very many FHA loans in my market, because most of our buyers are seeking second homes.

Jun 03, 2023 07:45 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Joan,

Good list ..I don't do many FHA loans or have them on my listings but I've had more VA's lately and they have gone very smoothly! No problem with the appraisals! 

Jun 03, 2023 08:39 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, I so agree with you!

Jun 03, 2023 03:28 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Don, that makes sense.

Jun 03, 2023 03:29 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Dorie, that sounds very nice.

Jun 03, 2023 03:29 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

We just closed on a home that went to FHA. The sellers weren't worried as they had a clean house, and we found a couple of small items during the inspection found and they fixed.

Jun 03, 2023 06:13 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Good to hear Ed that it all went smooth and closed.

Jun 04, 2023 05:12 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Yes I've had issues with FHA and house conditions in the past - luckily we were able to get things fixed appropriately.

Jun 04, 2023 06:47 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Kat, good to hear.   I like to walk a home BEFORE putting FHA & VA loan options into MLS, so hopefully to avoid any issues during the transaction.

Jun 04, 2023 07:09 AM